Credit Spread on AMS:INGA – 2.33% Potential Income Return In 39 Days

On September 7, 2020, we sold a bull put credit spread on AMS:INGA stock, set with expiry in the next 39 days (October 16, 2020). For this trade, we got a small EUR 15.42 premium (after commissions)

AMS:INGA - The ING Group is a Dutch multinational banking and financial services corporation headquartered in Amsterdam. Its primary businesses are retail banking, direct banking, commercial banking, investment banking, wholesale banking, private banking, asset management, and insurance services. 

As it was a public holiday in the US (September 7 - Labour Day) - we decided to look on other markets, as we like trading (sometimes) in Amsterdam, it was no brainer - INGA stock - as we have traded options on this stocks in the past with great results.

Here is our trade setup:

  • BOT 1 AMS:INGA OCT 16 '20 - 6.6 + 5.6 Put Bull Spread  -0.17  EUR  

For this trade, we got a premium of 15.42 EUR (after commissions) or 2.33% potential income return in the next 39 days.

These trades come as the #10 and #11 in the month of September, and if we stick with our trading plan for this month, the premium generated from this trade makes us about 1.92% from our $800 monthly goal, while in total we have already reached 14.72% this month

What happens next?

On the expiry date (October 16, 2020) AMS:INGA is trading above EUR 6.6 per share -  options expire worthlessly and we keep premium - if AMS:INGA trades under EUR 6.6 on the expiry date, we get assigned.

But as we already have collected a premium of EUR 0.15 per share, our break-even price for this trade then is EUR 6.6- EUR 0.15= EUR 6.45

  • Running Total  17 Trades since May 11, 2020

  • Options Income: EUR 122